When you are deciding on an accounting or finance certification, you may think that you have to choose between the Certified Public Accountant (CPA) license and the Chartered Financial Analyst (CFA®) credential.

But there is a much wider range of options available.

Although the CPA and CFA® are two of the best-known professional credentials in accounting and finance, there are many others that can help you gain skills and expertise in a specific area. You may want to consider one of these if your objective is to specialize in a particular field.

Here are some of the top alternatives worth considering before you choose your accounting career path.

Certified Public Accountant (CPA)

If you have decided to pursue a career in public accounting, the CPA can be an extremely valuable qualification. It is often essential for advancement within public accounting and is required for certain roles and services.

Passing the CPA exam can provide a host of other benefits, too. CPAs work in taxation, auditing, management accounting, financial reporting, consulting, government, and financial services.

To obtain a CPA license, you need to meet certain requirements. These are commonly described as the three Es:

  • Education
  • Exam
  • Experience

Each of the 55 jurisdictions that issue CPA licenses establishes its own rules.

Traditionally, many jurisdictions have required candidates to complete 150 semester hours of education before receiving a license. However, CPA licensing requirements are changing. Some jurisdictions now recognize or are introducing alternative pathways that combine a bachelor’s degree with additional professional experience.

The requirements for taking the exam may differ from those for obtaining a license. In some jurisdictions, you may be allowed to sit for the CPA exam before completing all the education required for licensure.

The second E refers to the Uniform CPA Examination. This exam is common to all 55 jurisdictions.

The current CPA exam contains four sections. Every candidate takes three four-hour Core sections:

  • Auditing and Attestation
  • Financial Accounting and Reporting
  • Taxation and Regulation

Candidates also select one four-hour Discipline section from the available options.

The requirements for the third E, experience, differ across jurisdictions as well. Depending on where you apply, qualifying experience may include work in public accounting, industry, government, academia, taxation, advisory services, or other approved areas.

Some licensing pathways require one year of qualifying experience, while others may require two or more years.

It’s a good idea to carefully study the rules that you need to comply with before you choose a CPA course and start studying for the CPA.

Chartered Financial Analyst (CFA)

Chartered Financial Analyst (CFA®)

The CFA® credential is highly sought after and well respected within the investment profession. It focuses on investment analysis, asset valuation, ethics, portfolio management, and wealth planning.

To become a CFA® charterholder, you need to pass three levels of exams. How difficult is this? The exams are demanding, and the pass rates vary by exam level and testing window. CFA Institute publishes current and historical pass rates, so it is better to check the latest figures rather than rely on a single year’s percentages.

Candidates are generally advised to plan approximately 300 hours of study per exam level. CFA Institute says it commonly takes candidates about three to four years to complete all three levels.

Passing the exams is not the only requirement.

To use the CFA® designation, you must also complete at least 4,000 hours of qualifying professional experience over a minimum period of 36 months. This experience can be earned before, during, or after you complete the exams.

So, if you want to specialize in investment analysis, asset management, or subjects related to portfolio management, the CFA® may be the right choice.

But if your goal is to obtain a professional accounting license that can lead to opportunities in auditing, taxation, reporting, consulting, and other areas of accounting, the CPA may be a better fit.

Learn More About The CPA Exam

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Chartered Global Management Accountant (CGMA)

Chartered Global Management Accountant (CGMA)

The CGMA designation was established in 2012 by the American Institute of Certified Public Accountants and the Chartered Institute of Management Accountants.

As the name of the CGMA certification implies, the focus is on management accounting.

CGMA designation holders often work as business strategists. They use financial and non-financial information to support planning, improve performance, manage risk, and help organizations make better decisions.

The CGMA Professional Qualification contains three levels:

  • Operational
  • Management
  • Strategic

Under the traditional self-tailored pathway, candidates complete nine objective tests and three case-study examinations. However, exemptions and alternative learning pathways may change the number or type of assessments that an individual candidate needs to complete.

Candidates must also complete a minimum of three years of verified, relevant professional experience.

The CGMA is not simply an additional certification for CPAs. Candidates around the world may pursue the qualification through CIMA, and the appropriate route can depend on their education, professional credentials, and previous experience.

Certified Management Accountant (CMA)

Certified Management Accountant (CMA)

The Institute of Management Accountants issues the CMA certification.

To become a CMA, you generally need to hold a bachelor’s degree from an accredited college or university or possess an accepted professional certification. You must also maintain active membership in the Institute of Management Accountants and complete two continuous years of professional experience in management accounting or financial management.

The experience requirement can be completed before you take the exam or within seven years after you pass it.

There are two parts to the CMA exam:

  • Part 1: Financial Planning, Performance, and Analytics
  • Part 2: Strategic Financial Management

You have three years to pass both parts of the CMA exam.

What if you don’t complete the exam in three years?

If this happens, any part that you previously passed will expire. You will have to repay the CMA entrance fee and complete both exam parts within a new three-year period.

The CMA can be especially valuable for accounting and finance professionals who plan to work in corporate finance, financial planning and analysis, management accounting, strategy, or operational decision-making.

Compare the Best CMA Review Courses

Certified Fraud Examiner (CFE)

The Association of Certified Fraud Examiners administers the CFE exam. Successful candidates who satisfy all the certification requirements earn the Certified Fraud Examiner credential.

Preparing for the CFE exam may involve studying the Fraud Examiners Manual and other resources that cover the techniques and procedures for preventing, detecting, and investigating fraud.

The current CFE exam focuses on three main areas:

  • Fraud Schemes and Financial Crimes
  • Fraud Investigations and Legal Issues
  • Fraud Prevention and Deterrence

Passing the exam is only one of the requirements for becoming a CFE.

Eligibility is determined through a points system based on education and professional experience. Candidates generally need at least 40 points to take the exam. To receive the credential, they must have at least 50 points and 2 years of fraud-related professional experience.

Candidates must also be members of the Association of Certified Fraud Examiners, agree to follow its professional ethics requirements, and submit supporting information about their education and professional experience.

The application also requires three professional recommendations from individuals who have worked with the candidate and can comment on their character, integrity, and professional skills.

Certified Internal Auditor (CIA)

Certified Internal Auditor (CIA)

The CIA is a very useful certification if you plan to build a career in internal auditing. It is issued by the Institute of Internal Auditors.

To apply for this designation through the traditional pathway, you need to have the appropriate combination of education and professional experience.

If you hold a master’s degree or its equivalent, you generally need a minimum of one year of relevant experience.

Bachelor’s degree holders generally require two years of relevant experience.

If you do not hold a college degree, you may still be eligible, but you generally need five years of relevant experience.

The IIA also offers additional routes for certain candidates, including pathways that involve the Internal Audit Practitioner designation and Challenge Exams for qualifying professionals.

The CIA exam consists of three parts:

  • Internal Audit Fundamentals
  • Internal Audit Engagement
  • Internal Audit Function

The exam is aligned with The IIA’s Global Internal Audit Standards and covers areas such as ethics, governance, risk management, internal controls, fraud risk, audit engagements, communication, and the management of an internal audit function.

The CIA exam is challenging, so you should allow yourself enough time to study each part thoroughly.

Compare the Best CIA Review Courses

Enrolled Agent (EA)

Enrolled Agent (EA)

An enrolled agent is a tax professional who has earned the privilege of representing taxpayers before the Internal Revenue Service in the United States.

Enrolled agent status is the highest credential awarded by the IRS.

Most candidates earn the credential by passing a three-part IRS exam called the Special Enrollment Examination.

Candidates are expected to have expert-level knowledge of individual taxation, business taxation, and the rules governing taxpayer representation.

The Special Enrollment Examination consists of three parts:

  • Part 1: Individual Taxation
  • Part 2: Business Taxation
  • Part 3: Representation, Practices, and Procedures

Each part contains 100 multiple-choice questions and lasts three and a half hours. Candidates must pass all three parts within three years.

Passing the Special Enrollment Examination is not the only way to qualify.

Certain former IRS employees may be exempt from the exam requirement due to their prior technical experience. However, eligibility is not automatic. Former employees must apply and demonstrate that their experience meets the IRS requirements.

After passing the exam, candidates must apply for enrollment and pass a tax-compliance and background check.

Even after you earn the EA credential, you are expected to keep your knowledge of federal tax law up to date. Enrolled agents generally need to complete 72 hours of continuing education every three years.

They must ordinarily complete at least 16 hours each year, including two hours of ethics, using IRS-approved continuing education providers.

Compare the Best EA Review Courses

Certified Information Systems Auditor (CISA)

Certified Information Systems Auditor (CISA)

The CISA certification is ideal for professionals who audit, control, monitor, or assess information technology and information systems.

To earn the certification, you must pass the CISA exam and satisfy ISACA’s professional-experience requirements.

The standard requirement is at least five years of professional experience in information systems auditing, control, assurance, or security.

However, certain education and professional experience may be used to waive up to three years of the requirement. You may also take the exam before completing all the required experience, but you must apply for certification within five years after passing it.

The CISA exam consists of 150 questions covering five domains:

  • Domain 1: Information Systems Auditing Process
  • Domain 2: Governance and Management of IT
  • Domain 3: Information Systems Acquisition, Development and Implementation
  • Domain 4: Information Systems Operations and Business Resilience
  • Domain 5: Protection of Information Assets

After you are certified, you must comply with continuing education requirements to maintain your certification.

CISA holders must complete at least 20 hours of continuing professional education each year and a total of 120 hours during each three-year reporting period.

Compare the Best CISA Review Courses

Which Certification Should You Choose?

Which Certification Should You Choose?

For many people who plan to work in accounting, auditing, taxation, or financial reporting, the CPA is an excellent choice. It is a highly respected license that can lead to opportunities in public accounting, private companies, government agencies, consulting firms, banks, and financial institutions.

However, the CPA is not automatically the best option for everyone.

If you plan to specialize in information systems, fraud examination, internal auditing, management accounting, taxation, or investment analysis, you may want to select a credential that provides deeper expertise in that particular area.

Before you start working toward a specific certification, do your homework carefully.

How many years will it take you, and how much will it cost?

Do you meet the education requirements?

If you are already working, will you be able to devote the time required to prepare for the exams?

Will you be in a position to satisfy the professional-experience requirements?

Is the credential recognized by employers in the industry and location in which you plan to work?

Think about the questions that are most relevant to you and consider your answers carefully. This will help you select a certification that matches your experience, career plans, and long-term goals.

Certification and licensing requirements can change. Before applying, confirm the current rules with the organization that administers the credential or, in the case of the CPA, the appropriate state or jurisdictional board of accountancy.

FAQs

Which accounting certification is best?

The best certification depends on your career goals. The CPA is a strong choice for accounting and auditing, while credentials such as the CFA, CMA, CIA, CFE, EA, and CISA are better suited to specific specialties.

Is the CPA better than the CFA?

Neither is automatically better. The CPA focuses on accounting, auditing, taxation, and reporting, while the CFA focuses on investment analysis, portfolio management, and asset valuation.

Can I hold more than one certification?

Yes. Many professionals earn multiple credentials to expand their expertise or qualify for more specialized roles.

How long does it take to earn a professional certification?

The time required varies. Some credentials can be completed within a year, while others require several years of exams, education, and professional experience.

Do certification requirements vary by location?

Yes. CPA licensing rules vary by jurisdiction, and other credentials may have different education, experience, and continuing education requirements. Always check the issuing organization’s current rules.